Team Siliconindia

• India surges into semiconductor race with over $21 Billion investments in ATMP & OSAT segments under India Semiconductor Mission
• Tata to build India’s 1st chip fab with Taiwan’s PSMC in Gujarat; ₹27,000 Cr ATMP unit in Assam to produce 48 million chips/day
• Micron, HCL-Foxconn boost momentum with major projects; India eyes full-stack chip ecosystem & reduced import dependency

India's semiconductor sector is in the midst of a revolutionary period, with investments of more than $21 billion going towards the Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) segments. These last steps in the chip-making process are vital, adding about 12-15 percent to the total value of a chip. The Indian government's strategic emphasis on these regions is aimed at creating a strong semiconductor ecosystem, making the country a major player in the global value chain.

One of the significant developments is Tata Electronics' tie-up with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) to establish India's first semiconductor fabrication unit in Dholera, Gujarat. The plant will start producing chips by 2026. Meanwhile, Tata is setting up a ₹27,000 crore ATMP facility in Jagiroad, Assam, which will be able to produce 48 million chips daily, substantially enhancing the industrial scene of the region.

Adding muscle to the ATMP/OSAT ecosystem further, the HCL-Foxconn venture has got approval for investment of ₹3,706 crore in an OSAT facility in Jewar, Uttar Pradesh. The factory will produce display driver chips for different applications like mobile phones, laptops, and automobiles. The plant is expected to cater to 40% of India's demand for these chips and is likely to create about 2,000 jobs.

Micron Technology's ₹22,500 crore investment in a Gujarat ATMP facility is another landmark. This is included under the overall India Semiconductor Mission (ISM) that provides up to 50 percent fiscal incentives to eligible semiconductor projects. ISM's goal is to get global players to India and create a supportive ecosystem for semiconductor manufacturing.

The net impact of these efforts is anticipated to establish a complete semiconductor ecosystem in India, including design, fabrication, assembly, and testing.

By targeting the ATMP and OSAT segments, India hopes to fill key gaps in the semiconductor supply chain, lower dependence on imports, and strengthen its stance in the global electronics manufacturing sector. These advancements not only guarantee economic development and employment but also indicate the resolve of India to emerge as an independent and technologically sound nation in the semiconductor field.